Apple Inc. confirmed on Monday that it will buy the popular music recognition app Shazam Entertainment Ltd. Shazam, a UK-based app, lets the users identify songs by pointing a smartphone at the audio source.
The iPhone maker didn’t reveal the price for the acquisition. Nevertheless, a report was released saying that the deal amounted to $400 million. The amount was far short of the most recent $1 billion valuation for the privately held Shazam.
“We have exciting plans in store, and we look forward to combining with Shazam upon approval of today’s agreement,” said Apple.
“We are thrilled that Shazam and its talented team will be joining Apple. Since the launch of the App Store, Shazam has consistently ranked as one of the most popular apps for iOS,” the company added.
The US tech giant said that Shazam will be a “natural fit” with its Apple Music streaming service, pointing out that it can help users in discovering new songs.
The company did not elaborate on its plans but it will not be able to make major changes to Shazam until it secures regulatory approval.
Apple Music has 27 million users, competing with Spotify Ltd., which has 60 million users. Shazam is also available on Android-based services, but did not say whether Apple will be keeping the Android version available.
Apple said that Shazam’s team will be joining the Cupertino company.
Atos Offers to buy Gemalto
Gemalto the struggling European digital security company, received the unsolicited offer of the French IT services group Atos.
Atos revealed on Monday that it had submitted an all-cash offer of €46 per share for Gemalto on November 28.
The bid comes as Gemalto is put under pressure after posting four profit warnings in a year. It also missed the chance to grow its security business’ strength through a large acquisition. Gemalto is the world’s largest maker of chips found in mobile phones and credit cards.
If the acquisition becomes successful, Atos stands to grow its strength in the expanding so-called Internet of Things (IoT). IoT is a sector of internet-connected machinery and household devices able to collect and exchange data through embedded sensors and European payment services on top of digital security, Atos stated.
“Bpi is not only favorable to this operation of European consolidation, but it also authorized me to tell you about it,” said Atos Chief Executive Thierry Breton. He also stated that he met with the main shareholders and Bpi in particular.
Bpifrance is Gemalto’s biggest shareholder, owning 8.51 percent of Gemalto’s shares, according to its latest annual report.
HQBroker is here to give you a daily news roundup about the forex, commodities, technologies, automobiles, and economies. You can open an account now and make yourself updated with essential news in the market.